2016 Tech Spend to be More 2H-Loaded than 2015 or 2014
For the past several years now we’ve been asking our high-level enterprise IT end user respondents to tell us their intended spending seasonality. Now that the2016 Technology Spending Intentions Survey has reached a sample size in excess of 540, we feel comfortable in the overall directionality of the survey. With that said, we feel the responses regarding seasonality are quite compelling. Not only are respondents stating their spend will be more 2H-heavy than they did at this time last year or even at this time in 2014, but among those that intend to spend more in 1H16 than in 2H16 are stating that their 1H spend will be more Q2 heavy than Q1 than compared to years past. Additionally, this trend is strongest among the largest organizations in the world.
So this leaves us initially asking ourselves the following questions: Solid overall enterprise technology spend in 2016? Yes. Strong start to enterprise IT spending in 2016? Unlikely. How will this impact vendors’ outlooks for Q1, 1H16 and CY16? TBD, but not boding wonderfully from a 10,000' perspective.
All the best,
Director, Enterprise Technology Research (ETR)